US stocks rise on better inflation data
- S&P 500 gained 0.4% while Nasdaq Composite Index advanced 0.5%
Wall Street stocks rose after better-than-expected US inflation data, including a drop in the producer price index, eased concerns about potential Federal Reserve interest rate hikes.
- Producer price index contraction in June.
- Lower-than-expected consumer price index.
- Rising oil prices and future inflation concerns.
NEW YORK: Wall Street stocks climbed early Wednesday following an improved US inflation reading that helped to ease concerns about possible Federal Reserve interest rate hikes.
The producer price index dropped by 0.3 percent month-on-month in June, the first such contraction since August 2025, reflecting a pullback in energy prices at the time.
However, oil prices have resumed an upward climb in recent days on rising US-Iran tensions that have undermined a ceasefire.
About 15 minutes into trading, the Dow Jones Industrial Average was up 0.1 percent at 52,550.46.
The broad-based S&P 500 gained 0.4 percent to 7,573.84, while the tech-rich Nasdaq Composite Index advanced 0.5 percent to 26,237.93.
The improved PPI data came after Tuesday’s consumer price index reading showed lower inflation than expected.
“The PPI numbers were another pleasant surprise,” said Steve Sosnick of Interactive Brokers.
“The market is sort of looking through it a little bit, because first of all we had the good numbers yesterday and secondly because since those numbers were compiled, we’ve seen energy move in the wrong direction.”